Fundraising for private equity real estate investment more than doubled in the second quarter of 2013 from the previous quarter, according to the latest data released by alternative assets research firm Preqin.

The firm noted in its July 1 report that between the 33 closed-end private real estate funds that held final closes in the second quarter, they raised $17.3 billion. It represented a significant increase on the $6 billion raised in the first quarter, which marked a 10-year low for private real estate fundraising.

“The second quarter of 2013 has seen increasing momentum in the private equity real estate fundraising market, with the capital raised in the quarter increasing by 188 percent,” said Andrew Moylan, head of real assets products for Preqin.

Another positive sign for the fundraising market in the second quarter, according to Moylan, was that $16.1 billion were raised toward the targets of 51 funds that held interim closes. These are closes in which the accounting records to determine the fund’s position are closed prior to that fund’s final closing.

Moylan also pointed out that the amount of time spent on the market by funds has decreased. Funds that closed in the first half of 2013 spent an average of 18.7 months in the fundraising market, a decrease from the average of 19.2 months taken by funds that closed in 2012.

Preqin data indicate that there are currently 446 private real estate funds in the market, targeting aggregate commitments of $168 billion. Moylan said that while the number of funds in the market has increased by just 12 from the first quarter, the aggregate target amount of funds on the road has gone up by $12 billion.

“Investor appetite for the asset class continues to improve. However, the fundraising market remains extremely competitive,” Moylan said. “The aggregate target of funds on the road has increased from $156 billion at the start of the second quarter of 2013 to $168 billion at the beginning of the third quarter of 2013.”

North American-focused funds raised the most capital with 26 receiving aggregate commitments of $15.3 billion. Three Europe-focused funds raised $8 billion, and four funds focused on Asia raised $1.2 billion.

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NAREIT®, the National Association of Real Estate Investment Trusts®, is the worldwide representative voice for REITs and publicly traded real estate companies with an interest in U.S. real estate and capital markets. NAREIT's members are REITs and other businesses throughout the world that own, operate, and finance income-producing real estate, as well as those firms and individuals who advise, study, and service those businesses.